Inclusionary Housing
Inclusionary Housing Ordinance and Guidelines
Developer Requirements
Developers of new housing construction must submit the following to the Housing Division at housing@cityofepa.org:
- A completed Inclusionary Housing Application (see Supporting Documents below)
- A completed Fair Housing and Marketing Plan (see Supporting Documents below)
- The applicable application fee*
*The current fees are listed in the City's Master Fee Schedule (comprehensive_fee_schedule_-_effective_july_18_2026.pdf).
Please note the following fee structure:
- $545 per application if project complies with the current Inclusionary Housing Ordinance by providing the required 20% of the total residential units as affordable housing.
- $1,713 per application if project proposes an Alternative Compliance Option or if the application involves an alternative compliance proposal for a project with four units or less, which will require public hearing and Council approval.
- $3,427 per application if project proposes an Alternative Compliance Option or if the application involves an alternative compliance proposal for a project with five or more units, which will require public hearing and Council approval.
- Additional fees may apply, see fee schedule
Inclusionary Housing Ordinance
On November 19, 2019, the City Council adopted Ordinance No. 425, the Inclusionary Housing Ordinance (IHO), adding Chapter 18.37 to the City of East Palo Alto Development Code. The Ordinance applied to all new residential development.
On September 16, 2025, the East Palo Alto City Council considered and adopted an ordinance amending the City’s IHO to facilitate lot splits pursuant to SB 9, effective October 16, 2025. The City’s Inclusionary Housing Ordinance requirements, including the requirement to pay any in-lieu fees, would not be applied to projects for which an SB 9 lot split was sought and approved administratively by the City.
Please schedule a meeting with the Housing Project Manager at housing@cityofepa.org to discuss your options.
Program Guidelines
The Inclusionary Housing Guidelines, adopted October 20, 2020 and updated on a regular basis, are the companion document to the Inclusionary Housing Ordinance. The Guidelines are intended to assist potential homebuyers or renters, as well as developers, by addressing the key components of the Ordinance.
Overview
For projects with fewer than 5 units, the inclusionary obligation is either:
- Payment of (percentage of) an In-Lieu Fee; or
- One Inclusionary Unit provided on-site.
The most recent In-Lieu Fees can be found here: https://www.cityofepa.org/housing/page/inclusionary-housing-lieu-fees.
For projects of 5 or more units, the inclusionary obligation is as follows:
For-Sale Residential Developments |
||
|---|---|---|
Compliance Options |
Obligation |
Requirement |
| On-Site | 20% |
10% of units at Median Income |
|
10% of units at Moderate Income |
||
|
Off-Site requires City Council approval |
25% |
13% of units at Median Income |
|
12% of units at Moderate Income |
||
|
In-Lieu Fee requires City Council approval |
25% | $268,800 per inclusionary unit (FY25-26) |
Rental Residential Developments |
||
|---|---|---|
Compliance Options |
Obligation |
Requirement |
| On-Site | 20% | 5% of units at 35% AMI |
| 10% of units at 50% AMI | ||
| 5% of units at 60% AMI | ||
|
Off-Site requires City Council approval |
25% | 7% of units at 35% AMI |
| 12% of units at 50% AMI | ||
| 6% of units at 60% AMI | ||
|
In-Lieu Fee requires City Council approval |
25% | $299,200 per inclusionary unit (FY25-26) |
The City of East Palo follows the 2025 Department of Housing and Community Development (HCD) state income limits and Inclusionary Housing Guidelines.
Supporting Documents
Chapter 1 Inclusionary Housing Plan (247 KB) Chapter 5 Off-Site Compliance Option (200 KB) Inclusionary Housing Ordinance (269 KB) 